When a Balloon Makes Sense
A balloon reduces the periodic payment by pushing a lump sum to the end of the term. This can align with planned upgrades, resale, or expected cash events. However, it requires discipline and either refinance or payoff strategies at maturity.
Run the Tradeoffs
Use the aircraft loan calculator to set either a percentage or fixed balloon and compare total interest and cash flow. Add extra principal to see how prepayments reduce the outstanding balance before maturity.